“We accomplished a great deal during the quarter, and while
there were some things to like and point out here, winter weather and an
unusual number of large fire claims impacted our underwriting results.”

Financial and Operational Highlights

2016 First Quarter

(All results are compared to prior year period unless otherwise noted)

Operating return on average common equity(annualized)1 of
4.3% compared to 4.2%

Dividend declared of $0.0625 per share payable June 15th

Kingstone now approved to write property and casualty insurance in
Rhode Island

Kingstone Announces Quarterly Dividend of $0.0625 per share

The Company also announced that its Board of Directors declared a
quarterly dividend of $0.0625 per share payable on June 15, 2016 to
stockholders of record at the close of business on May 31, 2016.

(1) These measures are not based on GAAP and are defined and reconciled
to the most directly comparable GAAP measures in “Information Regarding
Non-GAAP Measures.”

Management Commentary

Kingstone’s Chairman and CEO, Barry Goldstein, commented about the first
quarter, “We accomplished a great deal during the quarter, and while
there were some things to like and point out here, winter weather and an
unusual number of large fire claims impacted our underwriting results.

Direct written premiums in our continuing lines of business grew by
21.6%. We began to see a decline in the contribution of our Auto
Physical Damage line to the overall growth rate. The Auto Physical
Damage line, after growing fivefold in the last three calendar years,
grew by just 29.9% in Q1. In our core personal lines of homeowners and
dwelling fire coverages, which account for 76% of gross premiums
written, we saw a stronger contribution as these grew by 22.5%.

We were happy to see a decline in overall claims frequency during the
quarter, helping us to report a net loss ratio of 65.3%, down 2.7 points
from last year’s 68.0%. We were again able to release some pre-2015
reserves which favorably impacted the quarter’s net loss ratio by 2.9
points.

However, an unfortunate and random spurt of large fire losses, those
with direct losses exceeding $200,000, added 6.8 points to the net loss
ratio compared to Q1 2015, and incrementally reduced our earnings per
share by $0.09. And while this was a winter kinder than the prior two,
it still yielded losses we label as a catastrophe. The computation of
how we determine the amount of winter weather catastrophe losses has
been discussed on previous conference calls, as the excess losses above
an average winter season. During Q1, cat losses from severe winter
weather added 9.7 points to our net loss ratio, or $.13 per diluted
share. This is slightly above our initial high-end estimate of 9.0
points for the quarter. Note that in Q1 2015, winter cat losses
contributed 17.7 points.”

Kingstone’s SVP and Chief Actuary, Ben Walden, elaborated on the loss
ratio for the quarter. “Despite the relatively benign winter season in
the New York region, a single severe freezing event in mid-February
negatively impacted our result for the quarter. The timing of the event
preceded a holiday week, and as temperatures plunged to sub-zero levels,
several large claims from frozen pipes resulted in severe water damage
losses.”

Mr. Walden added, “Our net core loss ratio excluding severe winter
weather and prior year development increased from 49.3% to 58.5% in Q1
2016. The primary reason for the increase in the core net loss ratio was
an unusual number of large fire claims. The Q1 core net loss ratio was
impacted by 6.8 points in additional large fire claim activity compared
to the large fire claim impact for Q1 2015. It should be noted that the
overall frequency of fire claims did not change materially in Q1
compared to previous quarters."

Mr. Goldstein added, “Aided by a strong fixed income market, our
portfolio experienced an increase to net unrealized gains, which, net of
tax, amounted to $926,000 and added $.13 per share to our quarter end
book value of $6.32."

Financial Highlight Table

Financial Highlights

Three Months Ended March 31,

($ in thousands except per share data)

2016

2015

% Change

Direct written premiums*

$

23,043

$

19,489

18.2%

Net written premiums*

$

14,662

$

10,878

34.8%

Net premiums earned

$

14,532

$

10,386

39.9%

Total ceding commission revenue

$

2,770

$

3,089

-10.3%

Net investment income

$

813

$

575

41.4%

U.S. GAAP Net income

$

541

$

382

41.6%

U.S. GAAP Diluted EPS

$

0.07

$

0.05

40.0%

Comprehensive income

$

1,467

$

893

64.3%

Net operating income*

$

488

$

427

14.3%

Net operating income diluted EPS*

$

0.07

$

0.06

16.7%

Return on average equity (annualized)

4.7%

3.8%

0.9 pts

Net loss ratio

65.3%

68.0%

-2.7 pts

Net underwriting expense ratio

31.6%

29.9%

1.7 pts

Net combined ratio

96.9%

97.9%

-1 pts

Effect of catastrophes on net combined ratio

9.7 pts

28.5 pts

-18.8 pts

Net combined ratio excluding the effect of catastrophes

87.2%

69.4%

17.8 pts

* These measures are not based on GAAP and are defined and
reconciled to the most directly comparable GAAP measures in
"Information Regarding Non-GAAP Measures."

2016 First Quarter Review

Net Income:

Net income increased 41.6% to $.54 million during the three month period
ended March 31, 2016, compared to net income of $.38 million in the
prior-year period. The increase can be attributed to a 39.9% increase in
net premiums earned as a result of growth and changes in quota share
reinsurance, a 41.4% increase in net investment income, and an
improvement in the net loss ratio that was partially offset by an
increase in the net underwriting expense ratio.

Earnings per share (“EPS”):

Kingstone reported EPS of $.07 per diluted share for the three months
ended March 31, 2016, compared to $.05 per diluted share for the three
months ended March 31, 2015. EPS for the three month periods ended March
31, 2016 and March 31, 2015 was based on 7.4 million and 7.3 million
diluted weighted average shares outstanding.

Direct Written Premiums(1),
Net Written Premiums(1)
and Net Premiums Earned:

Direct written premiums (1) for the first quarter of 2016
were $23.0 million, an increase of 18.2% from $19.5 million in the prior
year period. The increase is attributable to an 18.9% increase in the
total number of policies in-force for continuing lines as of March 31,
2016 from March 31, 2015.

The Company’s growth rate for its continuing lines of business was 21.6%
during the first quarter of 2016. The Company began the non-renewal of
its existing commercial auto policies beginning May 1, 2015. The Company
had 34 and 599 commercial auto policies in force as of March 31, 2016
and March 31, 2015, respectively.

Net written premiums (1) increased 34.8% to $14.7 million
during the three month period ended March 31, 2016 from $10.9 million in
the prior year period. This change is after taking into account the
change from a gross to net quota share treaty as of July 1, 2015. The
change to a net quota share treaty shifted all of the catastrophe
reinsurance cost to the Company. The treaty change increased the ceded
catastrophe premiums, resulting in an incremental reduction to net
written premiums.

Net premiums earned for first quarter ended March 31, 2016 increased
39.9% to $14.5 million, compared to $10.4 million in the first quarter
ended March 31, 2015. The increase was primarily due to the Company’s
continuing growth, in addition to retaining a higher percentage of its
premiums due to the reduction of the quota share percentage in its
personal lines quota share treaty on July 1, 2015.

Net Loss Ratio:

For the quarter ended March 31, 2016, the Company’s net loss ratio was
65.3%, compared to 68.0% in the prior year. In 2016, the impact of prior
year development was favorable by 2.9 points, compared to unfavorable
prior year development of 1.0 points for the quarter ended March 31,
2015, or an improvement of 3.9 points in the impact of prior year
development.

Severe winter weather had a 9.7 point impact on the net loss ratio for
2016, compared to a 17.7 point impact for 2015. The core loss ratio
excluding prior year development and severe winter weather was 58.5%,
which was 9.2 points higher than the core loss ratio of 49.3% recorded
for 2015. However, 6.8 points of this variance was related to an
increased impact from large fire claims, categorized as those with gross
losses over $200K.

Net Underwriting Expense Ratio:

For the quarter ended March 31, 2016, the ratio of other underwriting
expenses to direct earned premiums decreased to 14.6% from 15.8% in the
prior year period. The Company believes that utilizing the ratio of
other underwriting expenses to direct earned premiums offers a
consistent comparison between periods when there is a change in quota
share ceding percentages.

For the quarter ended March 31, 2016, the Company’s net underwriting
expense ratio increased to 31.6% from 29.9% in the prior year period.
The increase was due to the impact that reduced quota share ceding
commission revenues have in relation to net premiums earned, resulting
from the decrease in personal lines quota share ceding percentage to 40%
from 55% on July 1, 2015. Changes in quota share ceding percentages make
comparisons of the net underwriting expense ratio between periods less
meaningful.

(1) These measures are not based on GAAP and are defined and reconciled
to the most directly comparable GAAP measures in “Information Regarding
Non-GAAP Measures.”

Net Combined Ratio:

Kingstone’s net combined ratio was 96.9% for the three month period
ended March 31, 2016, compared to 97.9% for the prior year period.

Balance Sheet / Investment Portfolio

Kingstone’s cash and investment holdings were $94.0 million at March 31,
2016, compared to $90.4 million at December 31, 2015. The Company’s
investment holdings are comprised primarily of investment grade
corporate, mortgage-backed and municipal securities, with fixed income
investments representing approximately 88.7% of total investments at
March 31, 2016, and 88.0% at December 31, 2015. The Company’s effective
duration on its fixed-income portfolio is 4.37 years, and this measure
has steadily decreased over the past several quarters.

Net investment income increased 41.4% to $813,000 for the first quarter
of 2016 from $575,000 in the prior year period, largely due to an
increase in invested assets and a decline in investment expenses. The
pre-tax equivalent investment yield on estimated annual income,
excluding cash, was 4.80% and 4.79% as of March 31, 2016 and 2015,
respectively.

Accumulated Other Comprehensive Income (AOCI), net
of tax

During the quarter ended March 31, 2016 AOCI increased by $.9 million to
$1.4 million.

Book Value

The Company’s book value per share at March 31, 2016 was $6.32, an
increase of 13.5% compared to $5.57 at March 31, 2015 and a sequential
quarterly increase from December 31, 2015 of 2.3%

31-Mar-16

31-Dec-15

30-Sep-15

30-Jun-15

31-Mar-15

Book Value Per Share

$

6.32

$

6.18

$

6.00

$

5.73

$

5.57

% Increase from specified period to 3/31/2016

2.3%

5.3%

10.3%

13.5%

Conference Call Details

Management will discuss the Company’s operations and its financial
results in a conference call on Friday, May 13, 2016, at 8:30 a.m. ET.

The dial-in numbers are:

(877) 407-3105 (U.S.)

(201) 493-6794 (International)

Accompanying Slide Presentation and Webcast

The Company will also have an accompanying slide presentation available
in PDF format on the Kingstone Companies website at http://www.kingstonecompanies.com/.
The presentation will be made available 30 minutes prior to the
conference call. In addition, the call will be simultaneously webcast
over the Internet via the Kingstone website or by clicking on the
conference call link: Kingstone
2016 First Quarter Conference Call. The webcast will be archived and
accessible for approximately 30 days.

Information Regarding Non-GAAP Measures

Direct written premiums-
represents the total premiums charged on policies issued by the Company
during the respective fiscal period.

Net written premiums-
represents direct written premiums less premiums ceded to reinsurers.

Net premiums earned - is the GAAP
measure most closely comparable to direct written premiums and net
written premiums. Management uses direct written premiums and net
written premiums, along with other measures, to gauge the Company’s
performance and evaluate results. Direct written premiums and net
written premiums are provided as supplemental information, are not a
substitute for net premiums earned and do not reflect the Company’s net
premiums earned.

The table below details the direct written premiums, net written
premiums, and net premiums earned for the periods indicated:

For the Three Months Ended March 31,

2016

2015

$ Change

% Change

(000’s except percentages)

Direct and Net Written Premiums Reconciliation:

Direct written premiums excluding commercial auto

$

23,052

$

18,954

$

4,098

21.6

%

Commercial auto direct written premiums

(9

)

535

(544

)

(101.7

)

%

Direct written premiums

23,043

19,489

3,554

18.2

%

Assumed written premiums

5

8

(3

)

(37.5

)

%

Ceded written premiums

(8,386

)

(8,619

)

233

(2.7

)

%

Net written premiums

14,662

10,878

3,784

34.8

%

Change in unearned premiums

(130

)

(492

)

362

(73.6

)

%

Net premiums earned

$

14,532

$

10,386

$

4,146

39.9

%

Net operating income - is net income
exclusive of realized investment gains, net of tax. Net income is the
GAAP measure most closely comparable to net operating income.

Operating return on average common equity
- is net operating income divided by average common equity. Return on
average common equity is the GAAP measure most closely comparable to
operating return on average common equity.

Management uses net operating income and operating return on average
common equity, along with other measures, to gauge the Company’s
performance and evaluate results, which can be skewed when including
realized investment gains, which may vary significantly between periods.
Net operating income and operating return on average common equity are
provided as supplemental information, are not a substitute for net
income and do not reflect the Company’s overall profitability.

Three Months Ended

Three Months Ended

March 31, 2016

March 31, 2015

Amount

Dilutedearningspercommonshare

Amount

Dilutedearningspercommonshare

(000’s except per common share amounts)

Net Operating Income and Diluted Earnings per Common Share
Reconciliation:

Net income

$

541

$

0.07

$

382

$

0.05

Net realized (gain) loss on investments

(80)

67

Less tax effect on realized (gains) losses

(27)

22

Net realized (gain) loss on investments, net of taxes

(53)

$

0.00

45

$

0.01

Net operating income

$

488

$

0.07

$

427

$

0.06

Weighted average diluted shares outstanding

7,360,564

7,344,563

Operating Return on Average Common Equity (Annualized)

Net income

541

382

Average common equity

45,750

40,708

Return on average common equity (annualized)

4.7%

3.8%

Net realized (gain) loss on investments, net of taxes

(53)

45

Average common equity

45,750

40,708

Return on average common equity (annualized)

-0.5%

0.4%

Net operating income

488

427

Average common equity

45,750

40,708

Operating return on average common equity (annualized)

4.3%

4.2%

Net combined ratio excluding the effect of
catastrophes - is a non-GAAP ratio, which is computed as the
difference between GAAP net combined ratio and the effect of
catastrophes on the net combined ratio. We believe that this ratio is
useful to investors and it is used by management to reveal the trends in
our business that may be obscured by catastrophe losses. Catastrophe
losses cause our loss trends to vary significantly between periods as a
result of their incidence of occurrence and magnitude, and can have a
significant impact on the net combined ratio. We believe it is useful
for investors to evaluate this component separately and in the aggregate
when reviewing our underwriting performance. We also provide it to
facilitate a comparison to our outlook on the net combined ratio
excluding the effect of catastrophes. The most directly comparable GAAP
measure is the net combined ratio. The net combined ratio excluding the
effect of catastrophes should not be considered a substitute for the net
combined ratio and does not reflect the Company’s net combined ratio.

The following table reconciles the net combined ratio excluding the
effects of catastrophes to the net combined ratio:

Kingstone is a property and casualty insurance holding company whose
principal operating subsidiary, Kingstone Insurance Company, is
domiciled in the State of New York. Kingstone is a multi-line property
and casualty insurance company writing business exclusively through
independent retail and wholesale agents and brokers. Kingstone is
licensed to write insurance policies in New York, New Jersey,
Pennsylvania, Connecticut, Texas and Rhode Island. Kingstone offers
property and casualty insurance products to individuals and small
businesses primarily in New York State.

Forward-Looking Statement

Statements in this press release may contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical
facts, may be forward-looking statements. These statements are based on
management’s current expectations and are subject to uncertainty and
changes in circumstances. These statements involve risks and
uncertainties that could cause actual results to differ materially from
those included in forward-looking statements due to a variety of
factors. More information about these factors can be found in
Kingstone’s filings with the Securities and Exchange Commission,
including its latest Annual Report filed with the Securities and
Exchange Commission on Form 10-K. Kingstone undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

The following table summarizes gross and net premiums written, net
premiums earned, and loss and loss adjustment expenses by major product
type, which were determined based primarily on similar economic
characteristics and risks of loss.

For the Three Months Ended

March 31,

2016

2015

Gross premiums written:

Personal lines

$

17,441,086

$

14,237,717

Commercial lines

3,128,138

2,799,370

Commercial auto(1)

(8,793

)

535,236

Livery physical damage

2,431,915

1,872,615

Other(2)

56,057

52,402

Total

$

23,048,403

$

19,497,340

Net premiums written:

Personal lines

$

9,385,438

$

5,952,781

Commercial lines

2,814,905

2,537,775

Commercial auto(1)

(8,485

)

485,914

Livery physical damage

2,431,915

1,872,615

Other(2)

38,102

28,850

Total

$

14,661,875

$

10,877,935

Net premiums earned:

Personal lines

$

9,463,896

$

5,960,475

Commercial lines

2,680,725

2,412,143

Commercial auto(1)

85,088

662,632

Livery physical damage

2,255,854

1,306,577

Other(2)

46,112

43,972

Total

$

14,531,675

$

10,385,799

Net loss and loss adjustment expenses:

Personal lines

$

7,548,551

$

4,348,571

Commercial lines

910,834

1,467,693

Commercial auto(1)

(456,486

)

339,208

Livery physical damage

988,553

547,741

Other(2)

76,079

77,146

Unallocated loss adjustment expenses

416,324

282,858

Total

$

9,483,855

$

7,063,217

Net loss ratio:

Personal lines

79.8

%

73.0

%

Commercial lines

34.0

%

60.8

%

Commercial auto(1)

-536.5

%

51.2

%

Livery physical damage

43.8

%

41.9

%

Other(2)

165.0

%

175.4

%

Total

65.3

%

68.0

%

1.

Effective October 1, 2014 we decided to no longer accept
applications for new commercial auto coverage. In February 2015, we
decided to no longer offer renewals to our existing commercial auto
policies beginning with those that expired on or after May 1, 2015.

2.

“Other” includes, among other things, premiums and loss and loss
adjustment expenses from our participation in a mandatory state
joint underwriting association.

KINGSTONE COMPANIES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income and Comprehensive
Income (Unaudited)